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all taxes are equal to 0 can you solve in excel please and show how Suppose that your total asset is evaluated at 550,000 dollars
all taxes are equal to 0 can you solve in excel please and show how
Suppose that your total asset is evaluated at 550,000 dollars in which $350,000 is debt and $200,000 is equity. The cost of debt is 3% and the cost of equity is 5%. Suppose that you plan to invest this money in product X which will yield an annual cash flow of $80 000 (before tax) over the next 10 years with a terminal value estimated at $20,000 (value at year 10). Calculate the ROA of this project? What if you must repay the debt in equal payments in the coming ten years (calculate the ROE) Step by Step Solution
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